Norway · Delayed Price · Currency is NOK Borregaard ASA Earnings Call Transcripts
Fiscal Year 2026
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The AGM approved all proposals, including a 12% higher dividend, board and committee elections, and remuneration adjustments. Financial results showed strong growth, with strategic investments in specialization, sustainability, and capacity expansion. No shareholder objections or questions were raised.
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Sales volumes are set to rise in both BioSolutions and BioMaterials for 2026, though average prices in BioMaterials will decline due to mix and market pressures. Cost volatility, global conflicts, and competition from Chinese imports remain key risks, while currency impacts and hedging strategies are closely monitored.
Fiscal Year 2025
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All-time high EBITDA was achieved despite lower bioethanol prices and higher costs, with strong cash flow and improved results in BioSolutions and BioMaterials. The dividend is proposed to increase by 12%, and impairments on bio-based startups and a project delay were recorded.
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Q4 outlook reiterates previous guidance, with BioSolutions and BioMaterials volumes slightly down but margins strong. Wood and energy costs are trending favorably, while anti-dumping legal costs and global uncertainties remain key risks.
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Q3 2025 EBITDA fell to NOK 440 million, mainly due to lower bioethanol prices and a cellulose production disruption. Biosolutions saw continued agricultural growth, while biomaterials and fine chemicals underperformed. Board approved further Sarpsborg expansion and participated in Alginor financing.
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Q2 2025 saw 5% revenue growth and higher EBITDA, led by biomaterials and BioSolutions, while Fine Chemicals declined. Environmental investments and a strong balance sheet support a positive outlook, with stable or improving margins expected in key segments.
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Sales volumes in BioSolutions and BioMaterials are on track, with agriculture and specialized grades driving growth. Currency hedging and environmental investments support profitability, while tariffs and trade wars introduce uncertainty but are mitigated by diversification and specialization.
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EBITDA rose to NOK 511 million, driven by record BioSolutions results and strong agricultural sales, while operating revenues surpassed NOK 2 billion. Tariffs and trade tensions pose risks, but a diversified portfolio and environmental investments support resilience.
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Annual report published with ESRS compliance. 2025 guidance expects stable biosolutions and biomaterials volumes, higher biomaterials prices, and lower bioethanol prices. Wood and energy costs remain key risks, while currency hedging and product mix improvements support profitability.
Fiscal Year 2024
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Q4 and full-year EBITDA reached record highs, led by BioSolutions and specialization, despite higher input costs and lower Fine Chemicals deliveries. Dividend is proposed up 13%, and investments focus on energy efficiency and CO2 reduction. Positive currency effects and stable wood costs are expected in 2025.
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EBITDA and revenues grew strongly year-over-year, led by higher volumes in Biosolutions and Fine Chemicals. A NOK 490 million capacity expansion at Sarpsborg was announced, and wood costs remain a key risk. Q4 guidance expects stable Biosolutions pricing and lower Fine Chemicals deliveries.
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Specialization and value growth remain central, with a focus on high-margin, niche products and geographic expansion in Asia. Innovation is driven by sustainability and regulatory trends, with new technologies and products targeting high-growth markets. Financial performance is strong, with disciplined capital allocation and major investments in capacity, sustainability, and bio-based startups.
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EBITDA reached NOK 510 million, with BioSolutions achieving a record quarter and BioMaterials impacted by lower prices and higher wood costs. Investments in Alginor and sustainability initiatives were highlighted, while the outlook remains cautious amid rising wood costs and global uncertainties.